Soto v. Ten Bridges

CourtCourt of Appeals of Arizona
DecidedJuly 24, 2025
Docket1 CA-CV 24-0759
StatusUnpublished

This text of Soto v. Ten Bridges (Soto v. Ten Bridges) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Soto v. Ten Bridges, (Ark. Ct. App. 2025).

Opinion

NOTICE: NOT FOR OFFICIAL PUBLICATION. UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

ARGYLL VEGA SOTO, Plaintiff/Appellee,

v.

TEN BRIDGES, LLC, et al., Defendants/Appellants.

No. 1 CA-CV 24-0759 FILED 07-24-2025

Appeal from the Superior Court in Maricopa County No. CV2021-004184 The Honorable John L. Blanchard, Judge

AFFIRMED

COUNSEL

Law Offices of Kyle A. Kinney, PLLC, Scottsdale By Kyle A. Kinney Counsel for Plaintiff/Appellee

Zwillinger Wulkan PLC, Phoenix By Scott H. Zwillinger, Peter A. Silverman, Jennifer L. Allen, Samantha T. Lee Co-Counsel for Defendants/Appellants

Legal AZ, Tempe By Morgan Seegmiller Co-Counsel for Defendants/Appellants SOTO v. TEN BRIDGES, et al. Decision of the Court

MEMORANDUM DECISION

Judge Samuel A. Thumma delivered the decision of the Court, in which Presiding Judge Kent E. Cattani and Judge Angela K. Paton joined.

T H U M M A, Judge:

¶1 Defendant Ten Bridges, LLC (Ten Bridges) appeals from a judgment entered after a jury verdict, challenging the admission of parol evidence, the sufficiency of the evidence supporting common law fraud and a punitive damages award in favor of plaintiff Argyll Vega Soto. Because Ten Bridges has shown no error, the judgment is affirmed.

FACTS AND PROCEDURAL HISTORY

¶2 Vega Soto owned real property in Maricopa County, Arizona. He fell behind on homeowners’ association (HOA) payments, and in 2018, the HOA sought foreclosure against him. In December 2018, a default judgment entered against Vega Soto, and a judicial foreclosure was ordered. A sheriff’s foreclosure sale took place in June 2019. The sheriff used the proceeds to pay the HOA lien and deposited $117,277.39 in excess proceeds with the court.

¶3 Ten Bridges buys distressed properties and the right to excess proceeds. Ten Bridges’ employee Sharon Leckey left a voice mail message with Vega Soto in November 2019, offering Ten Bridges’ services and mentioning options. Vega Soto did not return the call. Leckey then sent Vega Soto an email on December 27, 2019, stating there were “excess funds related to” the property he had owned and that Ten Bridges had expertise in recovering excess proceeds and had helped people all around the country to do so. Leckey’s email stated the process to recover excess proceeds was “extensive,” “exhausting” and “tedious.” On behalf of Ten Bridges, Leckey’s email offered Vega Soto two options: either sell his rights to the excess proceeds for a lump sum he would receive upon signing the agreement or split with Ten Bridges the legal costs of filing an application for excess proceeds.

2 SOTO v. TEN BRIDGES, et al. Decision of the Court

¶4 In the following three days, Vega Soto and Leckey exchanged emails and texts, and had telephone conversations, about the excess proceeds. Ultimately, Vega Soto agreed to sell Ten Bridges the right to pursue the $117,277.39 in excess proceeds in exchange for a cash payment of $10,000. Vega Soto alleges Leckey also promised that, if Ten Bridges successfully recovered the excess proceeds, it would pay him an additional $5,000.

¶5 The next afternoon, Leckey told Vega Soto to drive to a UPS store to meet a notary and sign a quit claim deed, giving up any interest Vega Soto had in the property. As Vega Soto was driving to UPS, Leckey read the agreement to him over the phone. Then, Leckey emailed Vega Soto a copy, which he signed less than 30 minutes later after “glanc[ing]” at it. Once Vega Soto sent proof he had signed the contract, Leckey deposited $10,000 in Vega Soto’s account. Vega Soto texted Leckey a few days later, asking her to “remember the $5,000 left when [Ten Bridges] gets more money.”

¶6 Ten Bridges applied for the excess proceeds and, in mid-2020, obtained an order distributing the $117,227.39. After the United States Department of Housing and Urban Development (HUD) received payment of a $30,479.59 lien it had on the property, Ten Bridges received $86,797.80. Ten Bridges did not, at that time, pay Vega Soto the $5,000 he claimed they agreed upon if Ten Bridges successfully recovered the excess proceeds.

¶7 In January 2021, Vega Soto called Leckey to ask for an update. Leckey responded that Ten Bridges had yet to recover the funds and blamed the delay on COVID. Vega Soto, however, knew Ten Bridges had recovered the excess proceeds about seven months earlier.

¶8 Vega Soto then filed this case against Ten Bridges, alleging common law fraud in the inducement and breach of contract.

¶9 A five-day trial followed, where Vega Soto, Leckey and Ten Bridges’ owner and manager Demian Heald testified. Ten Bridges moved for judgment as a matter of law on the breach of contract claim, arguing that, when looking at the four corners of the contract, Ten Bridges had fulfilled the terms of the agreement. The court denied the motion and found that parol evidence of the verbal agreement for an additional $5,000, once Ten Bridges recovered the excess funds, was admissible as evidence of fraud in the inducement.

3 SOTO v. TEN BRIDGES, et al. Decision of the Court

¶10 After deliberating, the jury returned a verdict in favor of Vega Soto on both counts. The jury awarded $5,926.05 in damages on the breach of contract claim along with a combined total of $500,000 in compensatory and punitive damages on the fraud claim.

¶11 Ten Bridges renewed its motion for judgment as a matter of law on the breach of contract claim and also moved for new trial, both of which were denied. Ten Bridges timely appealed. This court has appellate jurisdiction pursuant to Article 6, Section 9, of the Arizona Constitution and Arizona Revised Statutes (A.R.S.) Sections 12- 120.21(A)(1) and - 2101(A)(1) (2025).1

DISCUSSION

¶12 Ten Bridges presents three arguments on appeal. First, Ten Bridges challenges the admission of testimony regarding a verbal agreement to pay an additional $5,000 if Ten Bridges successfully recovered the excess proceeds. Second, Ten Bridges argues Vega Soto presented insufficient evidence to support common law fraud. Third, Ten Bridges argues it was error to award punitive damages, and even if punitive damages were appropriate, the amount awarded was excessive and unconstitutional. The court addresses each argument in turn.

I. The Superior Court Did Not Err in Admitting Evidence of a Verbal Agreement for an Additional $5,000 if Ten Bridges Recovered the Excess Proceeds.

¶13 This court reviews rulings on the admission of evidence for an abuse of discretion and will reverse if “unfair prejudice resulted” or “the court incorrectly applied the law.” Larsen v. Decker, 196 Ariz. 239, 241 ¶ 6 (App. 2000) (citing cases).

¶14 The contract signed by Vega Soto states Vega Soto (referred to as Grantor) “for and in consideration of $10,000.00 (Ten-Thousand Dollars) received, conveys and quit claims to Ten Bridges LLC (‘Grantee’) . . . all of Grantor’s rights, title, and interest in the following described real property.” The contract has an integration clause, stating it “represents the entire and exclusive agreement between the Grantor and the Grantee. There are no other verbal agreements, terms, or conditions between the parties which are not expressly provided herein.”

1 Absent material revisions after the relevant dates, statutes and rules cited

refer to the current version unless otherwise indicated.

4 SOTO v. TEN BRIDGES, et al. Decision of the Court

¶15 Ten Bridges argues it was error to admit evidence of a verbal agreement that Ten Bridges would pay Vega Soto an additional $5,000 if Ten Bridges successfully recovered the excess proceeds.

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Soto v. Ten Bridges, Counsel Stack Legal Research, https://law.counselstack.com/opinion/soto-v-ten-bridges-arizctapp-2025.